This document provides an overview and table of contents for the book "Value Engineering: Analysis and Methodology" by Del L. Younker. The book introduces the value methodology approach for improving the value of projects, products, processes and systems. It covers conducting value studies, including assembling multidisciplinary teams, using a job plan to analyze functions and generate alternatives, and presenting recommendations. The book aims to teach professionals how to apply the value methodology to enhance outcomes and better meet objectives on future plans and projects.

1. VALUE
ENGINEERING
Analysis and Methodology
DEL L. YOUNKER
Value Consulting
Winter Springs, Florida, U.S.A.
MARCEL
MARCEL DEKKER, INC. NEW YORK • BASEL
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

2. Although great care has been taken to provide accurate and current information, neither the
author(s) nor the publisher, nor anyone else associated with this publication, shall be liable
for any loss, damage, or liability directly or indirectly caused or alleged to be caused by this
book. The material contained herein is not intended to provide specific advice or recom-
mendations for any specific situation.
Trademark notice: Product or corporate names may be trademarks or registered trademarks
and are used only for identification and explanation without intent to infringe.
Library of Congress Cataloging-in-Publication Data
A catalog record for this book is available from the Library of Congress.
ISBN: 0-8247-0696-X
This book is printed on acid-free paper.
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The publisher offers discounts on this book when ordered in bulk quantities. For more infor-
mation, write to Special Sales/Professional Marketing at the headquarters address above.
Copyright © 2003 by Marcel Dekker, Inc. All Rights Reserved.
Neither this book nor any part may be reproduced or transmitted in any form or by any
means, electronic or mechanical, including photocopying, microfilming, and recording, or
by any information storage and retrieval system, without permission in writing from the
publisher.
Current printing (last digit):
10 9 8 7 6 5 4 3 2 1
PRINTED IN THE UNITED STATES OF AMERICA
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

3. COST ENGINEERING
A Series of Reference Books and Textbooks
Editor
KENNETH K. HUMPHREYS, Ph.D.
Consulting Engineer
Granite Falls, North Carolina
1. Applied Cost Engineering, Forrest D. Clark and A. B. Lorenzoni
2. Basic Cost Engineering, Kenneth K. Humphreys and Sidney Katell
3. Applied Cost and Schedule Control, James A. Bent
4. Cost Engineering Management Techniques, James H. Black
5. Manufacturing Cost Engineering Handbook, edited by Eric M. Malstrom
6. Project and Cost Engineers' Handbook: Second Edition, Revised and
Expanded, edited by Kenneth K. Humphreys
7. How to Keep Product Costs in Line, Nathan Gutman
8. Applied Cost Engineering: Second Edition, Revised and Expanded,
Forrest D. Clark and A. B. Lorenzoni
9. Managing the Engineering and Construction of Small Projects: Practical
Techniques for Planning, Estimating, Project Control, and Computer
Applications, Richard £. Westney
10. Basic Cost Engineering: Second Edition, Revised and Expanded, Ken-
neth K. Humphreys and Paul Wellman
11. Cost Engineering in Printed Circuit Board Manufacturing, Robert P.
Hedden
12. Construction Cost Engineering Handbook, Anghel Patrascu
13. Computerized Project Control, Fulvio Drigani
14. Cost Analysis for Capital Investment Decisions, Hans J. Lang
15. Computer-Organized Cost Engineering, Gideon Samid
16. Engineering Project Management, Frederick L Blanchard
17. Computerized Management of Multiple Small Projects: Planning, Task
and Resource Scheduling, Estimating, Design Optimization, and Project
Control, Richard E. Westney
18. Estimating and Costing for the Metal Manufacturing Industries, Robert C.
Creese, M. Adithan, and B. S. Pabla
19. Project and Cost Engineers' Handbook: Third Edition, Revised and Ex-
panded, edited by Kenneth K. Humphreys and Lloyd M. English
20. Hazardous Waste Cost Control, edited by Richard A. Selg
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

4. 21. Construction Materials Management, George Stukhart
22. Planning, Estimating, and Control of Chemical Estimation Projects, Pablo
F. Navarrete
23. Precision Manufacturing Costing, E. Ralph Sims, Jr.
24. Techniques for Capital Expenditure Analysis, Henry C. Thome and Julian
A. Piekarski
25. Basic Cost Engineering: Third Edition, Revised and Expanded, Kenneth
K. Humphreys and Paul Wellman
26. Effective Project Management Through Applied Cost and Schedule
Control, edited by James A. Bent and Kenneth K. Humphreys
27. Cost Management of Capital Projects, Kurt Heinze
28. Applied Cost Engineering: Third Edition, Forrest D. Clark and A. B.
Lorenzoni
29. Planning, Estimating, and Control of Chemical Construction Projects: Second
Edition, Revised and Expanded, Pablo F. Navarrete and William C. Cole
30. Value Engineering: Analysis and Methodology, Del L Younker
Additional Volumes in Preparation
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

5. Preface
In today's economy, businesses, whether public or private, are striving to improve
the value of products, projects, programs, processes, systems, and techniques.
These efforts can be improved with a well-known, but often unused method called
the value methodology.
As this material is not new in some areas, it is how the methodology is used
that can make strides in improving value. While use of the value methodology can
reduce the costs, it can do so much more by improving teamwork, adding value,
and developing the right project, process, program, project, system, or technique.
A specific area of interest, in addition to learning and practicing the job plan,
is the identification of value mismatches between what an item costs and what it is
worth. The building of teams through function analysis and practicing good people
skills can strengthen the team's use of the job plan to create, select, develop, and
present to management solid alternative ways to improve the original concepts.
The book emphasizes certain areas that can be focused on during a value im-
provement study effort.
Value Engineering covers aspects of value improvement studies that can be
used as a learning course or as a teaching reference. The life cycle cost and team
leader practice situation problems and exams are to be used as a review of the ma-
terial and provide tools to help learn the material being covered.
Chapters 1-25 provide an introduction to the value methodology. During
this course of instruction an actual project may be concurrently used with the read-
ing material to conduct a value improvement study on a project, program, process,
system, or technique so that the group may demonstrate to management the bene-
fits of using this improvement tool. Chapters 26-55 focus on practicing as team
leaders to guide the group through example problems provided.
As this field continues to grow, more and more professionals may be needed
to improve value. We are responsible for finding and using methods such as the
value methodology to improve the outcome of each item being planned. As the
Association of General Contractors stated a few years ago, we can change our
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

6. future one project at at time, and so can we improve our future one project at a
time by practicing the value methodology, well known and used by some, and
unknown to others.
Value Engineering is intended for interested professionals who want to learn
"how to" apply this methodology to improve value and their future plans. It can
also be used by others who want to study how to use the step-by-step value meth-
odology approach to improving projects, products, processes, programs, systems,
or techniques as a team member or team leader.
I thank my family and others who have put their hearts into making such
great comments, suggestions, and edits. I dedicate this to my brother who did not
have a chance to get to see this effort through.
DelL. Younker
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

7. Contents
Preface
Part I. Introduction to the Value Methodology
1. Managing Value Objectives Using the Value Methodology
2. Discovering the Certification Process
3. Cost Overrun Trends
4. Meeting Project Value Objectives
5. Users of Managing Value Objectives
6. Value Objectives Methodology
7. Improving Value
8. Value Project Analysis Criteria
9. Pre-Study Work Plan
10. The Job Plan
11. Team Make Up
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

8. 12. A Sample "Live" MVO Study
13. MVO Study Examples
14. Phase 1: Information Gathering Procedures
15. Phase 2: Creative Brainstorming
16. People Skills During the MVO Study
17. Making Effective Presentations
18. Managing Conflicts
19. Phase 3: Evaluation Techniques
20. Phase 4: Development of Best Ideas
21. Phase 5: Presenting and Reporting Findings
22. Getting Best Results
23. Future Follow-Up and Implementation
24. Blank Sample of Study Format
25. Midterm Exam
Part II. Advanced Team Leader Training Techniques
26. Managing Project Objectives
27. Letting the Job Plan Work
28. Tips
29. Project Analysis
30. Creativity Process
31. Types of Functions
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

9. 32. Problem Solvers
33. Adding Value
34. Value Mismatch
35. Managing Time
36. Financial Breakdown
37. Contracting Methods/Decisions
38. Life Cycle Cost Components
39. Cost and Worth Per Function
40. Financially Important Decisions
41. Team Building Skills
42. Function Analysis Diagramming
43. Alternative Ideas
44. Evaluating Best Alternatives
45. Presentations for Management
46. MVO Program Enhancements
47. Solving Technical Problems
48. Breaking the Problem Down
49. Customer Focus
50. Leading a Session
51. Discussion Groups
52. Overall Component Analysis
53. Specific Component Analysis
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.

10. 54. Summarizing Study Results
55. Exam Review
Appendix A: Training Information
Appendix B: Answers to Chapters 25, 38, and 55
Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.